Four New SBLC Licenses Were Authorized to Support Underserved Communities
December 24, 2024
Delaney Sexton
Contributing Editor
Four New SBLC Licenses Were Authorized to Support Underserved Communities
“For the second time in over 40 years, the Biden-Harris SBA welcomes new lenders with a shared mission of filling capital gaps in underserved communities – the very same communities who are starting businesses at the highest rates in America today,” says Administrator Guzman. “With private markets playing an increasingly important role in small business lending, this expansion delivers against the Biden-Harris Administration’s unwavering commitment to providing affordable financing to the incredible entrepreneurs and new business starts revitalizing Main Streets across America. Congratulations to the four new licensees as they work alongside the mission-focused teams at the SBA to put the American dream of business ownership within reach for more entrepreneurs.”
Yesterday, SBA announced that four lending institutions were awarded SBLC licenses: Cooperative Business Services, A10 Capital, Lafayette Square, and Stonehenge Capital. These institutions will help broaden the availability of 7(a) loans in low-income and other underserved communities from their locations in Ohio, Idaho, Washington, D.C., and Louisiana, respectively.
- CBS (Cooperative Business Services, LLC) in Cincinnati, Ohio, is a Credit Union Service Organization and has facilitated over $400 million in funding to women-owned businesses and $123 million to veteran-owned companies in its 21 years of operation. It plans to build upon this work to address credit gaps in low-moderate income communities and shift in focus to smaller loan amounts, increased loan volume, and targeted outreach within its growing network of credit unions.
- A10 Capital (A10 SBA Lending, LLC) in Boise, Idaho, has been a commercial real estate leader since 2007 and partnered with SBA to provide approximately 20,000 Paycheck Protection Program loans to support small businesses through the pandemic. As an SBLC, A10 plans to target underbanked industries and underserved communities to reach women, veterans, rural markets, and minority-owners of all ethnicities in the service, retail, wholesale and manufacturing industries, including those seeking loans for domestic renewable energy, efficiency, sustainability, and pollution prevention. A10 intends to have at least 50% of all loans funded come from these underserved markets.
- Lafayette Square (Lafayette Square SBLC, LLC) with offices nationwide, is an impact-driven, minority-owned investment platform. Founded in 2020, Lafayette Square promotes public welfare and economic growth across the United States by principally lending to small businesses in underserved communities that substantially employ low-to-moderate-income individuals. The SBLC plans to increase focus on community solar, small-scale utility solar, engineering, recycling, and next-generation projects such as energy storage, as well as various initiatives supporting underserved communities generally.
- Stonehenge Capital (Stonehenge SBLC, LLC) in Baton Rouge, La., has been a leader in community development finance since its founding in 1999 and invested in small businesses across 38 states since its founding, including 30 states in the past five years. It plans to invest a minimum of 65% of its total loan volume in small businesses in low-income communities nationwide, as defined under the federal New Markets Tax Credit Program, and 25-40% of its total loan volume into green lending opportunities nationwide. Stonehenge’s track record includes over $1.5 billion invested in these underserved markets and communities and almost 200 investments of less than $5 million.
Congratulations to the four new SBLCs!
Source:
SBA Press Release